Equity Compensation Plans

6 Months Ended

Jun. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity Compensation Plans

5. Equity Compensation Plans

As of June 30, 2013, the Company’s equity compensation plans consisted of the 2003 Stock Incentive Compensation Plan (the “2003 Plan”) and the 2012 Stock Incentive Plan (the “2012 Plan” and together with the 2003 Plan, the “Plans”) under which incentive and non-qualified stock options and time and performance based restricted shares have been granted to employees and directors from authorized but unissued shares of common stock or treasury shares. The 2003 Plan is not active, but continues to govern all outstanding awards granted under the plan until the awards themselves are exercised or terminate in accordance with their terms. The 2012 Plan, approved by shareholders on April 27, 2012, authorize s 1.75 million shares of common stock for awards. The 2012 Plan also authorizes an additional 1.2 million shares of common stock to the extent awards granted under prior stock plans that were outstanding as of April 27, 2012 are forfeited. The 2012 Plan provides for the following type s of award: options, restricted stock, restricted stock units and other stock-based awards.

The Company incurred compensation expense of $0.2 million and $0.4 million for the quarters ended June 30, 2013 and June 30, 2012, respectively , and $0.7 million and $0.8 million for the six months ended June 30, 2013 and June 30, 2012, respectively, for the Plans, including restricted stock awards. No compensation costs were capitalized as part of inventory.

Stock Options

The following table is a summary of outstanding and exercisable options as of June 30, 2013:

In thousands except per share amounts and years	Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Outstanding at June 30, 2013		757	$	9.71		6.1	$	3,744
Exercisable at June 30, 2013		447	$	9.02		4.4	$	2,540
Expected to Vest at June 30, 2013		296	$	10.72		8.7	$	1,150

There were 12,500 stock options granted and 27,337 stock options exercised during the quarter ended June 30, 2013 and 12,500 stock options granted and 97,986 stock options exercised during the six months ended June 30, 2013. The amount of cash received from the exercise of stock options was $0.3 million during the quarter ended June 30, 2013 and $0.9 million during the six months ended June 30, 2013. The intrinsic value of stock options exercised was $0.1 million with a minimal tax benefit during the quarter ended June 30, 2013 and the intrinsic value of stock options exercised was $0.6 million with a tax benefit of $0.2 million for the six months ended June 30, 2013. There were no stock options granted during the quarter and six months ended June 30, 2012. The amount of cash received from the exercise s of stock options during the quarter and six months ended June 30, 2012 was $0.2 million and the intrinsic value of options exercised was $0.1 million with minimal tax benefit. At June 30, 2013, the total unrecognized compensation cost related to non -vested stock option awards was approximately $1.4 million, with a weighted average expected amortization period of 2.9 years.

Restricted Stock

Restricted stock includes both performance-based and time-based awards. There were 5,000 time-based restricted shares granted during the six months ended June 30, 2013 and no shares granted in the second quarter. There were 7,500 and 84,790 performance-based restricted shares granted during the quarter ended and six months ended June 30, 2013, which have a 2015 earnings per share target. During the six months ended June 30, 2013, there were 61,800 performance-based shares that vested in accordance with Plan provisions. There were no shares vested in the second quarter ended June 30, 2013. At June 30, 2013, there were 326,940 unvested restricted stock awards with total unrecognized compensation cost related to these awards of $1.8 million with a weighted average expected amortization period of 2.4 years. Compensation expense for performance based awards is recorded based on management’s assessment of the probability of achieving the performance goals and service period.